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Bitcoin Price Defies Gravity But Here Is Why It Could Decline Again
Bitcoin price is consolidating above the $26,000 support. BTC could start another decline if it stays below $27,400 for a long time.
Bitcoin Price Faces Resistance
Bitcoin price remained stable above the $26,000 level. BTC traded as low as $26,139 and recently started an upside correction. It was able to climb above the $26,250 level.
There was a move above the 23.6% Fib retracement level of the downward move from the $27,387 swing high to the $26,139 low. Besides, there was a break above a declining channel with resistance near $26,420 on the hourly chart of the BTC/USD pair.
Bitcoin price is now trading near $26,500 and the 100 hourly Simple moving average. It seems to be facing resistance near the $26,750 level. It is close to the 50% Fib retracement level of the downward move from the $27,387 swing high to the $26,139 low.
A clear move above the $26,750 resistance might start a decent increase. The next major resistance is near the $27,000 level. A close above $27,000 might send the price further higher.
Source: BTCUSD on TradingView.com
The next key resistance is near the $27,400 level. A clear move above the $27,400 resistance might call for a move toward the $27,500 resistance. Any more gains above the $27,500 resistance zone might send the price toward the $28,500 resistance zone.
Fresh Decline in BTC?
If Bitcoin’s price fails to clear the $27,000 resistance, it could continue to move down. another decline. Immediate support on the downside is near the $26,140 level.
The next major support is near the $25,850 level, below which the price might accelerate lower. In the stated case, the price could drop toward the $25,400 support in the near term.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is near the 50 level.
Major Support Levels – $26,140, followed by $25,840.
Major Resistance Levels – $26,750, $27,000, and $27,400.